It Is Appropriate to Use the Fixed Assets Turnover Ratio

question 99

True/False

It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.

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Definitions:

Creative Thinking

The ability to think in new and unusual ways and come up with unique solutions to problems.

Ambiguity

The quality of being open to more than one interpretation, resulting in uncertainty or confusion.

Leadership and Management

Refers to the roles and functions in guiding and controlling groups, organizations, or institutions towards achieving set objectives.

Leader Effectiveness

The measure of a leader's ability to achieve desired results, influence followers, and meet organizational goals.